ETF 2-Days Up Diagonal

This is a discussion of the "ETF 2-Days Up Diagonal" strategy.

The goal of this strategy is to make a bullish speculation once an index or sector has shown two strong consecutive up days.

Overview

• ETF 2-Days Up Diagonal utilizes a custom strategy which is labeled "CML_Diagonal_50-30_14-7dte" under the custom strategy dropdown menu.
• 2 legs

ETF 2-Days Up Diagonal Strategy Settings

ETF 2-Days Up Diagonal Open Conditions:

• On a scale of 1 to 5 (best) the minimum liquidity for an option trade is 4
• Yesterday, the stock moved up 0.75% or more
• On the day, the stock moves up 1% or more

Details on Options TradeMachine is Selecting for ETF 2-Days Up Diagonal Strategy:

• 1x long 50 delta call near 14 days to expiration
• 1x short 30 delta call near 7 days to expiration

Earnings Handling for ETF 2-Days Up Diagonal Strategy:

• Nothing Special

ETF 2-Days Up Diagonal Close Conditions:

• Options reach expiration (Close all legs with front month options)

Open next trade for ETF 2-Days Up Diagonal:

• At Normal Time